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Tds on advance payment

Queries 576 views 2 replies

Priyank

Others

32 Points Joined July 2014

Hello ,

I want to know, if tds should be deducted on an advance payment of a project(website development) cost. The total cost of the project is greater than 50000. Initial payment which we received is less than 26000. The client has deducted the TDS on initial amount. Is it right?

Thank you in advance.

Waiting for replies... asap

Replies (2)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

yes, it is correct.... tds can be deducted on advance payments where the whole amount exceeds the limit specified in the section.

sreejith

student

35 Points Joined July 2014

The fact is that if the assesse wants claim an expenditure (debitd to p&l a/c current ) tds must be deducted (if such payments need tds). If assesse deducted tax on advance payments also nothing wrong with it. ....